North CarolinaHB 4762025-2026 SessionHouseWALLET

AN ACT MAKING TECHNICAL CORRECTIONS AND ADMINISTRATIVE CHANGES TO THE LAWS GOVERNING AND RELATED TO THE DEPARTMENT OF STATE TREASURER.

Sponsored By: Carson Smith (Republican), Diane Wheatley (Republican)

Signed by Governor

ATTORNEYSBOARDSCHARTER SCHOOLSCJRSCORPORATIONS, NONPROFITCOUNCIL OF STATEDISABLED PERSONSEDUCATIONELEMENTARY EDUCATIONFEESGENERAL ASSEMBLYHEALTH SERVICESINTERSTATE COOPERATIONJUDGESLGERSLOCAL GOVERNMENTLRSMAGISTRATESMUNICIPALITIESOCCUPATIONSPRESENTEDPUBLICPUBLIC OFFICIALSRATIFIEDRETIREMENTSALARIES & BENEFITSSECONDARY EDUCATIONSOCIAL SERVICESSTATE EMPLOYEESSTATE TREASURERTEACHERSTSERSTSERS BOARDCHAPTEREDLGERS BOARDGOVERNMENT EMPLOYEESLOCAL GOVERNMENT EMPLOYEESABLE PROGRAM BOARD

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Bill Overview

Analyzed Economic Effects

11 provisions identified: 4 benefits, 2 costs, 5 mixed.

Bigger and restored benefits for some retirees

Beginning June 26, 2025, retirees who lost benefits because of a conviction can have them restored after an unconditional pardon or a vacated conviction by repaying prior contributions in one lump sum plus 6.5% annual compounded interest. Beneficiaries who retired under the former Law Enforcement Officers’ Retirement System and were contributing members on January 1, 1985 continue to receive their allowance without restriction and keep full membership rights. Teachers and State employees who retired before July 1, 1973 with a reduced allowance based on 30 or more years get those old reduction factors removed, and the same increase applies to their surviving annuitants.

Clearer benefit choice when you leave

Beginning June 26, 2025, when you end contributing membership, you may choose the benefit allowed under G.S. 135-3(a)(8) or G.S. 135-5(a), as applies to you. The law clarifies your options at termination.

Small cut of contributions for system fixes

Beginning June 26, 2025, the Board may direct up to 0.01% of required employer contributions into a separate fund to carry out legislative or IT needs. No employer contributions may go into this fund after January 1, 2035.

ABLE accounts protected from most state claims

Beginning June 26, 2025, the State does not claim money from an ABLE account for Medicaid unless federal law requires it. After a beneficiary dies, the State may file a claim with the State Treasurer within 60 days of notice. The Treasurer must notify Health and Human Services within 30 days, and ABLE applications must explain this rule. Agencies must share data to carry this out.

Longer health coverage for surviving children

Beginning June 26, 2025, a surviving dependent child who was covered at death, at birth, or on September 30, 1986 can stay on the fully contributory plan until age 26. If the child is certified as incapacitated, coverage can continue with no age limit.

Required training after state oversight problems

Beginning June 26, 2025, when the Local Government Commission intervenes or issues a unit letter, a county or city manager must complete at least six hours of training at or within six months of the event. The Commission can also require a finance officer to take training when it is overseeing the unit, there is a unit letter, an audit shows a control weakness, or the officer fails minimum qualifications. The unit must show proof of completion, and the Commission may require the unit to hire outside help.

Higher fee for out-of-state lawyers

Beginning June 26, 2025, the fee to let an out‑of‑state attorney practice temporarily is $225 per filing. Clerks or agencies send $200 to the Administrative Office of the Courts and $25 to the State Bar.

New paths into TSERS for charter schools

Beginning June 26, 2025, a charter school in its first two years can get one year of provisional entry into the State retirement system. The Board may revoke that provisional entry if required contributions are not paid on schedule, after at least 90 days’ written notice. After the first year, an actuarial and financial review is required, and provisional entry can be extended up to two more years. If a school elects to join more than two years after the charter was signed, it must file a complete application; the Board must approve or deny within 180 days, and, if approved, the school must give state boards the employee enrollment date. The Board may delegate these duties to the State Treasurer, and these rules apply to schools seeking to join or in their initial provisional period on or after June 26, 2025.

One-time plan switch for UNC and ECU staff

Beginning June 26, 2025, UNC Health Care staff hired before January 1, 2024 who were in TSERS or the Optional Retirement Program keep membership unless they make a one-time, permanent switch to a similar UNC benefit. The same one-time, irrevocable choice applies to employees of ECU’s Medical Faculty Practice Plan and ECU Dental School Clinical Operations hired before January 1, 2024. For eligible faculty in the Optional Retirement Program, the State and the participant contribute to ORP contracts or a trust as authorized.

Who serves on retirement oversight board

Beginning June 26, 2025, the law sets who serves on the Retirement System Board, including five trustees and eight Governor‑designated local roles. In election years, the Governor designates the eight members on April 1 or as soon as possible. If a member no longer holds the qualifying job, the Governor names a replacement until the next regular date.

Retiree rehire reports and some exemptions

Beginning June 26, 2025, employers must report within 90 days after any month a retiree is reemployed, including job terms, the rehire date, and monthly pay. Temporary General Assembly employees are exempt from the referenced reemployment earnings rule for pay earned while temporary. Half-time members of the named Commission are also exempt from that rule.

Sponsors & Cosponsors

Cosponsors

Bill Ward
Republican • House
Shelly Willingham
Democratic • House

Roll Call Votes

All Roll Calls

Yes: 266 • No: 4

House vote • 6/17/2025

HB 476: Department of State Treasurer Technical Corrections/Administrative Changes

Yes: 112 • No: 1 • Other: 6

Senate vote • 6/11/2025

HB 476: DST Technical Corrections/Admin. Changes 2025.-AB

Yes: 44 • No: 0 • Other: 6

House vote • 4/29/2025